Third Quarter 2015 Consolidated Pro Forma Highlights:
- Consolidated pro forma revenue increased 6.5% to $20.9 million from $19.6 million in the third quarter of 2014.
- Excluding OEM revenue, third quarter 2015 consolidated pro forma revenue increased 13.8% to $20.2 million from $17.7 million in the third quarter of 2014.
- Consolidated pro forma biologics revenue increased 15.5% to $9.8 million from $8.5 million in the third quarter of 2014.
- Consolidated pro forma fixation revenue, excluding OEM revenue, increased 12.3% to $10.4 million from $9.3 million in the third quarter of 2014.
- Pro forma gross profit for the period was 65.5%, which was at the high end of Company guidance of 64% to 66%.
BELGRADE, Mont., Nov. 11, 2015 (GLOBE NEWSWIRE) -- Xtant Medical Holdings, Inc. (NYSE MKT:XTNT), a leader in the development of class-leading regenerative medicine products and medical devices, today reported consolidated actual and consolidated pro forma financial results for the third quarter of 2015 and for the nine-months ended September 30, 2015. As previously announced, the Company completed its acquisition of X-spine Systems, Inc. on July 31, 2015. The consolidated pro forma results are presented as if the Company's current subsidiaries were combined for all periods presented below.
Consolidated Pro Forma Third Quarter 2015 Results
Revenue Consolidated pro forma revenue for the third quarter 2015 was approximately $20.9 million, an increase of 6.5% compared to approximately $19.6 million for the same period of 2014. During the third quarter of 2015 and 2014, the Company generated approximately $745,000 and $1.9 million, respectively, of Original Equipment Manufacturer ("OEM") sales from a large orthopedic device manufacturer. Excluding those sales, third quarter 2015 consolidated pro forma revenue increased approximately 13.8% compared to the same period last year.
| Consolidated Pro Forma Third Quarter 2015 Summary of Revenue | |||||||||||||
| (Stated in $'000's) | |||||||||||||
| 3Q15 | 3Q14 | Growth % | |||||||||||
| Biologics | $ | 9,761 | $ | 8,454 | 15.5 | % | |||||||
| Fixation (excluding OEM) | $ | 10,396 | $ | 9,256 | 12.3 | % | |||||||
| Consolidated Pro Forma Revenue (excluding OEM) | $ | 20,157 | $ | 17,710 | 13.8 | % | |||||||
| OEM | $ | 745 | $ | 1,909 | -61 | % | |||||||
| Consolidated Pro Forma Revenue | $ | 20,902 | $ | 19,619 | 6.5 | % | |||||||
For the nine-months ended September 30, 2015, consolidated pro forma revenue was approximately $64.4 million, an increase of $6.3 million or 10.8% compared to $58.1 million reported for the same period of 2014. Excluding OEM revenue, revenue increased 15.0% compared to the same period last year.
Gross Profit and Gross Margin Consolidated pro forma gross profit for the third quarter of 2015 was approximately $13.7 million or 65.5% of revenue compared to $13.2 million or 67.3% of revenue reported for the same period of 2014. Gross margin was at the high end of company guidance of 64% to 66%.
For the nine-months ended September 30, 2015, consolidated pro forma gross margin was 65.7% compared to 65.8% in the prior year.
Loss from Operations Consolidated pro forma loss from operations for the third quarter of 2015 was approximately $3.5 million compared to a loss of approximately $1.4 million for the same period of 2014. The loss for the period also includes approximately $610,000 of non-recurring general and administrative expenses and a non-cash impairment charge of $234,000 on net carrying value of pre-acquisition intangible assets.
For the nine-months ended September 30, 2015, on a consolidated pro forma basis, the Company's loss from operations was approximately $7.1 million compared to $3.3 million for the same period of 2014.
Net Loss On a consolidated pro forma basis, the company had a net loss of approximately $5.4 million and $16.1 million for the three months and nine months ended September 30, 2015, respectively, as compared to approximately $2.8 million and $11.3 million, respectively, for the same periods of 2014.
EBITDA The Company defines earnings before interest, taxes, depreciation and amortization ("EBITDA") as net income/(loss) from operations before depreciation, amortization, impairment charges and non-cash stock based compensation. On a pro forma combined basis, third quarter 2015 EBITDA loss was approximately $915,000. Excluding the non-recurring increase in general and administrative expenses referenced above, third quarter 2015 combined EBITDA loss was approximately $305,000.
Financial Resources and Liquidity As of September 30, 2015, the Company reported cash and cash equivalents of approximately $8.0 million. On September 4, 2015, the company sold 140,053 shares of restricted common stock to certain members of the Company's board of directors in a private placement transaction at $3.68 per share, which was the closing price on that date. Total proceeds were approximately $516,000.
The Company believes its cash resources are sufficient to execute its strategy through December 31, 2016.
2015 and 2016 Company Guidance The Company reiterates its 2015 revenue guidance to be within the range of $43 to $46 million for the second half of 2015 and second half 2015 EBITDA guidance to be in the range of $2.0 to $2.5 million, excluding one-time, non-recurring expenses. The Company also reiterates its 2016 revenue guidance of approximately $100 million to $105 million and EBITDA guidance of approximately $7.0 to $9.0 million.
Actual Results for the Three Months ended September 30, 2015 The actual operating results of Xtant Medical Holdings, Inc presented below and to be reported in the Company's Quarterly Report on Form 10-Q include three months of operating results for Bacterin International, Inc. and two months of operating results for X-spine Systems, Inc.
In connection with the acquisition of X-spine, the Company recorded approximately $3.9 million of acquisition and integration related expenses during the third quarter of 2015. Additional integration related expenses are expected during the fourth quarter of 2015 and first half of 2016.
The Company also reported a one-time gain on the extinguishment of debt of approximately $2.3 million associated with the refinancing and restructuring of the Company’s senior secured term loan with an affiliate of Orbimed Advisors as part of the acquisition financing.
Conference Call The company will also hold a conference hosted by Dan Goldberger, Chief Executive Officer, and John Gandolfo, Chief Financial Officer, to discuss the results. The call will be held at 10:00 AM ET, on November 12, 2015. Please refer to the information below for conference call dial-in information and webcast registration.
Conference date: November 12, 2015, 10:00 AM ET Conference dial-in: 877-269-7756 International dial-in: 201-689-7817 Conference Call Name: Xtant Medical Holdings, Inc. Third Quarter 2015 Results Call Webcast Registration: Click Here
Following the live call, a replay will be available on the Company's website, www.xtantmedical.com , under "Investor Info".
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About Xtant Medical Holdings
Xtant Medical Holdings, Inc. (NYSE MKT:XTNT) develops, manufactures and markets regenerative medicine products and medical devices for domestic and international markets. Xtant products serve the specialized needs of orthopedic and neurological surgeons, including orthobiologics for the promotion of bone healing, implants and instrumentation for the treatment of spinal disease, tissue grafts for the treatment of orthopedic disorders, and biologics to promote healing following cranial, and foot and ankle surgeries. With core competencies in both biologic and non-biologic surgical technologies, Xtant can leverage its resources to successfully compete in global neurological and orthopedic surgery markets. For further information, please visit www.xtantmedical.com .
Important Cautions Regarding Forward-looking Statements
This press release contains certain disclosures that may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to significant risks and uncertainties. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "continue," "efforts," "expects," "anticipates," "intends," "plans," "believes," "estimates," "projects," "forecasts," "strategy," "will," "goal," "target," "prospects," "potential," "optimistic," "confident," "likely," "probable" or similar expressions or the negative thereof. Statements of historical fact also may be deemed to be forward-looking statements. We caution that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others: the Company's ability to successfully integrate the acquisition of X-spine; the ability of the Company's sales force to achieve expected results; the Company's ability to meet its existing and anticipated contractual obligations, including financial covenant and other obligations contained in the Company's secured lending facility; the Company's ability to manage cash flow; the Company's ability to develop, market, sell and distribute desirable applications, products and services and to protect its intellectual property; the ability of the Company's customers to pay and the timeliness of such payments; the Company's ability to obtain financing as and when needed; changes in consumer demands and preferences; the Company's ability to attract and retain management and employees with appropriate skills and expertise; the impact of changes in market, legal and regulatory conditions and in the applicable business environment, including actions of competitors; and other factors. Additional risk factors are listed in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q under the heading "Risk Factors." The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.
Pro forma, projected and estimated numbers used in this press release are used only for illustrative purposes and are not forecasts and may not reflect actual results.
This press release contains supplemental measures of performance, such as EBITDA, that are not required by, or presented in accordance with, generally accepted accounting principles in the United States ("GAAP"). Such measures should not be considered as replacements of GAAP. Further information with respect to and reconciliations of such measures to the nearest GAAP measure can be found at the end of this press release.
The unaudited pro forma financial information contained in this press release is included for informational purposes only and does not purport to reflect actual results of operations or the financial position that would have occurred has Xtant and X-spine operated on a combined basis during the periods presented. The unaudited pro forma financial information should not be relied upon as being indicative of our financial condition or results of operations had the X-spine transaction occurred on the date assumed nor as a projection of our results of operations or financial position for any future period or date. The unaudited pro forma financial information should be read in conjunction with the historical financial statements and related notes of Xtant and X-spine.
| XTANT MEDICAL HOLDINGS, INC. | |||||||||||||||||||||||||
| Consolidated Pro Forma Statements of Operations | |||||||||||||||||||||||||
| For the Three Months Ended Sept 30, | For the Nine Months Ended Sept 30, | ||||||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
| Amount | Amount | Amount | Amount | ||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||
| Orthopedic Product Sales | $ | 20,577,473 | $ | 19,397,951 | $ | 63,612,869 | $ | 57,559,393 | |||||||||||||||||
| Other | 323,819 | 221,360 | 788,356 | 576,150 | |||||||||||||||||||||
| Total Revenue | 20,901,292 | 19,619,310 | 64,401,225 | 58,135,543 | |||||||||||||||||||||
| Cost of sales | 7,208,696 | 6,424,019 | 22,106,441 | 19,863,624 | |||||||||||||||||||||
| Gross Profit | 13,692,596 | 13,195,291 | 42,294,784 | 38,271,918 | |||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||||
| General and administrative | 4,532,981 | 3,708,414 | 12,984,500 | 10,668,313 | |||||||||||||||||||||
| Sales and marketing | 9,832,446 | 8,380,884 | 28,940,264 | 24,076,681 | |||||||||||||||||||||
| Research and development | 987,433 | 919,343 | 2,813,792 | 2,541,092 | |||||||||||||||||||||
| Depreciation and amortization | 1,562,220 | 1,524,351 | 4,201,058 | 4,175,222 | |||||||||||||||||||||
| Acquisition and Integration related expenses | - | - | - | - | |||||||||||||||||||||
| Gain from the Extinguishment of Debt | - | - | - | - | |||||||||||||||||||||
| Impairment of Assets | 233,748 | - | 233,748 | - | |||||||||||||||||||||
| Non-cash consulting | 50,000 | 39,697 | 190,869 | 81,924 | |||||||||||||||||||||
| Total Operating Expenses | 17,198,829 | 14,572,689 | 49,364,232 | 41,543,232 | |||||||||||||||||||||
| Loss from Operations | (3,506,232 | ) | (1,377,398 | ) | (7,069,448 | ) | (3,271,313 | ) | |||||||||||||||||
| Other Income (Expense) | |||||||||||||||||||||||||
| Interest expense | (2,153,985 | ) | (2,946,198 | ) | (8,146,038 | ) | (8,656,977 | ) | |||||||||||||||||
| Change in warrant derivative liability | 397,366 | 1,653,425 | (78,923 | ) | 1,038,190 | ||||||||||||||||||||
| Non-cash consideration associated with stock purchase agreement | - | - | (558,185 | ) | - | ||||||||||||||||||||
| Other income (expense) | (83,097 | ) | (70,344 | ) | (186,223 | ) | (253,289 | ) | |||||||||||||||||
| Total Other Income (Expense) | (1,839,716 | ) | (1,363,117 | ) | (8,969,368 | ) | (7,872,076 | ) | |||||||||||||||||
| Net Loss from Operations Before (Provision) Benefit for Income Taxes | (5,345,948 | ) | (2,740,515 | ) | (16,038,817 | ) | (11,143,389 | ) | |||||||||||||||||
| Benefit (Provision) for Income Taxes | |||||||||||||||||||||||||
| Current | 11,143 | 29,312 | 22,286 | 106,782 | |||||||||||||||||||||
| Deferred | - | - | - | - | |||||||||||||||||||||
| Net Loss | $ | (5,357,091 | ) | $ | (2,769,827 | ) | $ | (16,061,103 | ) | $ | (11,250,171 | ) | |||||||||||||
| EBITDA | $ | (914,778 | ) | $ | 986,825 | $ | 277,437 | $ | 3,450,381 | ||||||||||||||||
| See notes that are attached to the consolidated financial statements that are contained in the Company's 10K and 10Q's. | |||||||||||||||||||||||||
| XTANT MEDICAL HOLDINGS, INC. | ||||||||||||||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||||||||||||||
| For the Three Months Ended Sept 30, | For the Nine Months Ended Sept 30, | |||||||||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
| Amount | Amount | Amount | Amount | |||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||
| Orthopedic Product Sales | $ | 17,421,397 | $ | 8,246,325 | $ | 36,431,354 | $ | 25,712,586 | ||||||||||||||||||||
| Other | 271,623 | 207,179 | 657,396 | 537,821 | ||||||||||||||||||||||||
| Total Revenue | 17,693,020 | 8,453,504 | 37,088,749 | 26,250,407 | ||||||||||||||||||||||||
| Cost of sales | 6,035,673 | 3,017,734 | 12,883,439 | 9,718,952 | ||||||||||||||||||||||||
| Gross Profit | 11,657,347 | 5,435,770 | 24,205,310 | 16,531,455 | ||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||
| General and administrative | 3,980,804 | 2,282,386 | 8,805,104 | 6,664,982 | ||||||||||||||||||||||||
| Sales and marketing | 8,430,303 | 3,927,028 | 18,179,552 | 12,387,459 | ||||||||||||||||||||||||
| Research and development | 794,464 | 378,252 | 1,519,196 | 955,111 | ||||||||||||||||||||||||
| Depreciation and amortization | 1,541,220 | 58,763 | 1,765,994 | 216,343 | ||||||||||||||||||||||||
| Acquisition and Integration related expenses | 3,856,519 | - | 3,856,519 | - | ||||||||||||||||||||||||
| Gain from the Extinguishment of Debt | (2,345,019 | ) | - | (2,345,019 | ) | - | ||||||||||||||||||||||
| Impairment of Assets | 233,748 | - | 233,748 | - | ||||||||||||||||||||||||
| Non-cash consulting | 50,000 | 39,697 | 190,869 | 81,924 | ||||||||||||||||||||||||
| Total Operating Expenses | 16,542,040 | 6,686,126 | 32,205,964 | 20,305,819 | ||||||||||||||||||||||||
| Loss from Operations | (4,884,693 | ) | (1,250,356 | ) | (8,000,654 | ) | (3,774,364 | ) | ||||||||||||||||||||
| Other Income (Expense) | ||||||||||||||||||||||||||||
| Interest expense | (2,111,721 | ) | (1,498,508 | ) | (4,930,941 | ) | (4,216,109 | ) | ||||||||||||||||||||
| Change in warrant derivative liability | 397,366 | 1,653,425 | (78,923 | ) | 1,038,190 | |||||||||||||||||||||||
| Non-cash consideration associated with stock purchase agreement | - | - | (558,185 | ) | - | |||||||||||||||||||||||
| Other income (expense) | (89,926 | ) | (70,344 | ) | (193,052 | ) | (253,289 | ) | ||||||||||||||||||||
| Total Other Income (Expense) | (1,804,281 | ) | 84,573 | (5,761,101 | ) | (3,431,208 | ) | |||||||||||||||||||||
| Net Loss from Operations Before (Provision) Benefit for Income Taxes | (6,688,974 | ) | (1,165,783 | ) | (13,761,754 | ) | (7,205,572 | ) | ||||||||||||||||||||
| Benefit (Provision) for Income Taxes | ||||||||||||||||||||||||||||
| Current | - | - | - | - | ||||||||||||||||||||||||
| Deferred | - | - | - | - | ||||||||||||||||||||||||
| Net Loss | $ | (6,688,974 | ) | $ | (1,165,783 | ) | $ | (13,761,754 | ) | $ | (7,205,572 | ) | ||||||||||||||||
| Net loss per share: | ||||||||||||||||||||||||||||
| Basic | $ | (0.64 | ) | $ | (0.35 | ) | $ | (1.70 | ) | $ | (1.26 | ) | ||||||||||||||||
| Dilutive | $ | (0.64 | ) | $ | (0.35 | ) | $ | (1.70 | ) | $ | (1.26 | ) | ||||||||||||||||
| Shares used in the computation: | ||||||||||||||||||||||||||||
| Basic | 10,432,622 | 6,233,751 | 8,100,226 | 5,711,452 | ||||||||||||||||||||||||
| Dilutive | 10,432,622 | 6,233,751 | 8,100,226 | 5,711,452 | ||||||||||||||||||||||||
| See notes that are attached to the consolidated financial statements that are contained in the Company's 10K and 10Q's. | ||||||||||||||||||||||||||||
| XTANT MEDICAL HOLDINGS, INC. | |||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| As of | As of | ||||||||||
| Sept 30, | December 31, | ||||||||||
| 2015 | 2014 | ||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 7,970,433 | $ | 4,468,208 | |||||||
| Trade accounts receivable, net of allowance for doubtful accounts of $1,392,989 and $1,309,859, respectively | 13,318,450 | 4,427,081 | |||||||||
| Inventories, net | 22,042,508 | 9,558,648 | |||||||||
| Prepaid and other current assets | 1,039,561 | 654,140 | |||||||||
| Total current assets | 44,370,953 | 19,108,077 | |||||||||
| Non-current inventories | 1,681,138 | 1,934,258 | |||||||||
| Goodwill | 23,997,218 | 0 | |||||||||
| Property and equipment, net | 11,433,064 | 4,654,527 | |||||||||
| Intangible assets, net | 42,223,856 | 655,490 | |||||||||
| Other assets | 2,520,464 | 1,598,539 | |||||||||
| Total Assets | $ | 126,226,693 | $ | 27,950,891 | |||||||
| LIABILITIES & STOCKHOLDERS' (DEFICIT) EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Accounts payable | $ | 7,485,220 | $ | 3,876,760 | |||||||
| Accounts payable - related party | 1,035,447 | 250,629 | |||||||||
| Accrued liabilities | 6,716,897 | 1,921,301 | |||||||||
| Warrant derivative liability | 1,399,294 | 1,320,371 | |||||||||
| Current portion of capital lease obligations | 47,246 | 61,970 | |||||||||
| Current portion of royalty liability | 0 | 1,000,750 | |||||||||
| Current portion of long-term debt | 53,172 | 50,671 | |||||||||
| Total current liabilities | 16,737,277 | 8,482,452 | |||||||||
| Long-term Liabilities: | |||||||||||
| Capital lease obligation, less current portion | 18,962 | 11,808 | |||||||||
| Long term royalty liability, less current portion | 0 | 6,361,216 | |||||||||
| Long term convertible debt, less current portion | 68,000,000 | 0 | |||||||||
| Long-term debt, less current portion | 44,301,474 | 20,870,330 | |||||||||
| Total Liabilities | 129,057,714 | 35,725,806 | |||||||||
| Commitments and Contingencies | |||||||||||
| Stockholders' (Deficit) Equity | |||||||||||
| Preferred stock, $0.000001 par value; 5,000,000 shares authorized; no shares issued and Outstanding | - | - | |||||||||
| Common stock, $0.000001 par value; 95,000,000 shares authorized; 11,886,107 shares issued and outstanding as of September 30, 2015 and 6,679,646 shares issued and outstanding as of December 31, 2014 | 11 | 7 | |||||||||
| Additional paid-in capital | 81,798,160 | 63,091,620 | |||||||||
| Accumulated deficit | (84,629,192 | ) | (70,866,542 | ) | |||||||
| Total Stockholders’ Deficit | (2,831,021 | ) | (7,774,915 | ) | |||||||
| Total Liabilities & Stockholders’ Deficit | $ | 126,226,693 | $ | 27,950,891 | |||||||
| See notes that are attached to the consolidated financial statements that are contained in the Company's 10K and 10Q's. | |||||||||||
| XTANT MEDICAL HOLDINGS, INC. | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| For the Nine Months Ended | ||||||
| 2015 | 2014 | |||||
| Operating activities: | ||||||
| Net loss | $ | (13,761,754 | ) | $ | (7,205,572 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
| Depreciation and amortization | 2,403,934 | 498,343 | ||||
| Non-cash interest | 1,665,172 | 387,294 | ||||
| Gain from the Extinguishment of Debt | (2,345,019 | ) | 0 | |||
| Non-cash consideration associated with stock purchase agreement | 558,185 | 0 | ||||
| Loss on sale of fixed assets | 11,377 | 33,373 | ||||
| Impairment of Assets | 233,748 | 0 | ||||
| Amortization of debt discount | 707,281 | 1,207,859 | ||||
| Non-cash consulting expense/stock option expense | 881,681 | 938,785 | ||||
| Provision for losses on accounts receivable and inventory | 731,067 | 601,190 | ||||
| Change in derivative warrant liability | 78,923 | (1,038,190 | ) | |||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | (2,304,620 | ) | 346,151 | |||
| Inventories | 537,819 | (350,198 | ) | |||
| Prepaid and other assets | (325,976 | ) | 22,109 | |||
| Accounts payable | 776,214 | 884,436 | ||||
| Accrued liabilities | 1,124,888 | (1,495,107 | ) | |||
| Net cash used in operating activities | (9,027,080 | ) | (5,169,527 | ) | ||
| Investing activities: | ||||||
| Acquisition of X-spine Systems Inc. net of cash received | (73,033,049 | ) | 0 | |||
| Purchases of property and equipment and intangible assets | (444,312 | ) | (190,601 | ) | ||
| Proceeds from sale of fixed assets | 102,587 | 10,149 | ||||
| Net cash used in investing activities | (73,374,774 | ) | (180,452 | ) | ||
| Financing activities: | ||||||
| Net proceeds from the issuance of convertible debt | 66,322,366 | 0 | ||||
| Payment on royalty obligation | (542,905 | ) | 0 | |||
| Net proceeds from equity private placement | 516,380 | 0 | ||||
| Payments on capital leases | (78,490 | ) | 0 | |||
| Net proceeds from issuance of long term debt | 17,479,159 | 4,000,000 | ||||
| Payment on long term debt | (38,668 | ) | (492,695 | ) | ||
| Proceeds from the issuance of capital leases | 70,921 | (126,686 | ) | |||
| Net proceeds from the issuance of stock | 2,117,498 | 5,876,299 | ||||
| Net cash provided by financing activities | 85,846,261 | 5,383,604 | ||||
| Net change in cash and cash equivalents | 3,444,407 | 3,906,939 | ||||
| Cash and cash equivalents at beginning of period | 4,526,026 | 3,046,340 | ||||
| Cash and cash equivalents at end of period | $ | 7,970,433 | $ | 6,953,279 | ||
| See notes that are attached to the consolidated financial statements that are contained in the Company's 10K and 10Q's. | ||||||
| XTANT MEDICAL HOLDINGS, INC. | ||||||||||||||
| Calculation of Pro Forma EBITDA | ||||||||||||||
| For the three months ended | For the nine months ended | |||||||||||||
| Sept 30, | Sept 30, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| Loss from Operations | (3,506,232 | ) | (1,377,398 | ) | (7,069,448 | ) | (3,271,313 | ) | ||||||
| Impairment of Assets | 233,748 | 233,748 | ||||||||||||
| Non-Cash Compensation | 186,882 | 258,372 | 631,234 | 951,972 | ||||||||||
| Depreciation & Amortization | 2,170,824 | 2,105,850 | 6,481,903 | 5,769,722 | ||||||||||
| EBITDA | (914,778 | ) | 986,824 | 277,437 | 3,450,381 | |||||||||
Contact: COCKRELL GROUP 877.889.1972 investorrelations@thecockrellgroup.com cockrellgroup.com
